The annual inflation rate in Canada edged down to 1.9 percent in August 2019 from 2.0 percent in the previous month and below market expectations of 2 percent. It was the lowest inflation rate since March, primarily due to lower gasoline prices. Inflation Rate in Canada averaged 3.13 percent from 1915 until 2019, reaching an all time high of 21.60 percent in June of 1920 and a record low of -17.80 percent in June of 1921.

Inflation Rate in Canada is expected to be 1.80 percent by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate Inflation Rate in Canada to stand at 2.20 in 12 months time. In the long-term, the Canada Inflation Rate is projected to trend around 2.10 percent in 2020, according to our econometric models.

Canada Inflation Rate
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Calendar GMT Actual Previous Consensus TEForecast
2019-06-19 12:30 PM Inflation Rate YoY May 2.4% 2% 2.1% 2.1%
2019-07-17 12:30 PM Inflation Rate YoY Jun 2% 2.4% 2% 2.2%
2019-08-21 12:30 PM Inflation Rate YoY Jul 2% 2% 1.7% 1.8%
2019-09-18 12:30 PM Inflation Rate YoY Aug 1.9% 2% 2% 1.9%
2019-10-16 12:30 PM Inflation Rate YoY Sep 1.9% 1.8%
2019-11-20 01:30 PM Inflation Rate YoY Oct 1.7%
2019-12-18 01:30 PM Inflation Rate YoY Nov 1.8%



Canada Inflation Rate at 5-Month Low of 1.9%

The annual inflation rate in Canada edged down to 1.9 percent in August 2019 from 2.0 percent in the previous month and below market expectations of 2 percent. It was the lowest inflation rate since March, primarily due to lower gasoline prices.

Year-on-year, prices slowed mostly for transport (1.4 percent vs 1.5 percent in July), namely gasoline (-10.2 percent vs -6.9 percent) amid lower global oil prices; and food (3.6 percent vs 3.8 percent), driven by fresh vegetables, fresh fruit and meat. Also, cost increased less for recreation, education and reading (2.0 percent vs 2.7 percent); health and personal care (0.9 percent vs 1.5 percent) and alcoholic beverages, tobacco and recreational cannabis (0.9 percent vs 1.2 percent). In contrast, inflation edged higher for shelter (2.4 percent vs 2.3 percent); household operations, furnishings and equipment (0.5 percent vs 0.3 percent). Meantime, prices advanced at the same pace for clothing & footwear (1.1 percent).

Regarding special aggregates of the CPI, cost of goods slowed to 0.9 percent in August from 1.3 percent in July, namely durable (1.6 percent vs 1.9 percent) and non-durable goods (0.6 percent vs 1.3 percent); and cost of energy fell more deeply (-4.7 percent vs -3.2 percent). Conversely, cost of services increased at a faster pace (2.6 percent vs 2.4 percent).

On a monthly basis, consumer prices dropped 0.1 percent, after rising 0.5 percent in the previous month and compared with market expectations of a 0.2 percent decrease.

The BoC's annual core inflation, which excludes volatile items, eased to 1.9 percent in August from 2 percent in July, and below market consensus of 2.2 percent. It was the lowest rate in four months.


Statistics Canada | Luisa Carvalho | luisa.carvalho@tradingeconomics.com
9/18/2019 1:20:26 PM


News

Canada July Inflation Rate Steady at 2%
The annual inflation rate in Canada was at 2 percent in July 2019, unchanged from the previous month and above market expectations of 1.7 percent, as a slowdown in cost of services was offset by a rise in prices of goods, namely durable goods and food
Published on 2019-08-21

Canada Inflation Rate Slows to 2% in June
The annual inflation rate in Canada decreased to 2 percent in June of 2019 from 2.4 percent in the previous month and in line with market expectations, as cost slowed for shelter and transportation and energy prices fell further. Excluding energy, the inflation dropped to 2.6 percent in June from 2.7 percent in May.
Published on 2019-07-17

Canada Inflation Rate Rises to 7-Month High in May
The annual inflation rate in Canada increased to 2.4 percent in May 2019 from 2 percent in the previous month and above market expectations of 2.1. It was the highest inflation rate since October, mainly boosted by cost of food and transportation
Published on 2019-06-19

Canada Inflation Rate at 4-Month High of 2%
The annual inflation rate in Canada edged up to 2 percent in April 2019 from 1.9 percent in the prior month, matching market expectations. It is the highest inflation rate since December, driven by prices of shelter and transportation.
Published on 2019-05-15



Canada Prices Last Previous Highest Lowest Unit
Inflation Rate 1.90 2.00 21.60 -17.80 percent [+]
Inflation Rate Mom -0.10 0.50 2.60 -1.30 percent [+]
Consumer Price Index CPI 136.80 137.00 137.00 12.10 Index Points [+]
Core Consumer Prices 134.40 134.30 134.40 61.70 Index Points [+]
Core Inflation Rate 1.90 2.00 5.40 0.00 percent [+]
GDP Deflator 110.20 109.00 110.20 11.80 Index Points [+]
Producer Prices 117.30 117.70 119.70 15.60 Index Points [+]
Producer Prices Change -1.70 -1.70 21.10 -7.20 percent [+]
Export Prices 109.70 110.50 113.90 59.50 Index Points [+]
Import Prices 119.30 120.80 8964.00 73.00 Index Points [+]
Food Inflation 3.60 3.80 20.18 -7.14 percent [+]
Wholesale Prices 106.20 104.90 137.30 40.40 Index Points [+]
CPI Housing Utilities 144.60 144.30 144.60 39.10 Index Points [+]
CPI Transportation 143.30 144.20 144.20 10.90 Index Points [+]


Canada Inflation Rate

In Canada, the most important categories in the CPI basket are Shelter (27.5 percent of the total weight) and Transportation (19.3 percent). Food accounts for 16.1 percent; Household Operations, Furnishings and Equipment for 11.8 percent; Recreation, Education and Reading for 11.8 percent; Clothing and Footwear for 5.7 percent; Health and Personal Care for 5 percent; Alcoholic Beverages and Tobacco Products for the remaining 3 percent. The CPI basket is reviewed every four years on the basis of household surveys. The current weights are based on spending patterns in 2009. This page provides - Canada Inflation Rate - actual values, historical data, forecast, chart, statistics, economic calendar and news. Canada Inflation Rate - actual data, historical chart and calendar of releases - was last updated on September of 2019.

Actual Previous Highest Lowest Dates Unit Frequency
1.90 2.00 21.60 -17.80 1915 - 2019 percent Monthly
2002=100




Country Last Previous
Argentina 53.60 Aug/19
Australia 1.60 Jun/19
Brazil 3.43 Aug/19
Canada 1.90 Aug/19
China 2.80 Aug/19
Euro Area 1.00 Aug/19
France 1.00 Aug/19
Germany 1.40 Aug/19
India 3.21 Aug/19
Indonesia 3.49 Aug/19
Italy 0.40 Aug/19
Japan 0.30 Aug/19
Mexico 3.16 Aug/19
Netherlands 2.80 Aug/19
Russia 4.30 Aug/19
Saudi Arabia -1.30 Jul/19
Singapore 0.40 Jul/19
South Africa 4.30 Aug/19
South Korea 0.00 Aug/19
Spain 0.30 Aug/19
Switzerland 0.30 Aug/19
Turkey 15.01 Aug/19
United Kingdom 1.70 Aug/19
United States 1.70 Aug/19


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